Attached files
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| 8-K - CURRENT REPORT - AMERICAN BIO MEDICA CORP | abmc_8k.htm |
Exhibit 99.1
Contacts:
Melissa
A. Waterhouse
Chief
Executive Officer
(800)
227-1243, Ext 107
FOR IMMEDIATE RELEASE:
ABMC REPORTS FOURTH QUARTER AND YEAR END 2020 RESULTS
--Net Sales Increase 13.5% as Company Navigates the Covid-19
Pandemic--
Kinderhook, N.Y., April 15, 2021 – American Bio
Medica Corporation (OTCQB: ABMC) today announced financial results
for the fourth quarter and year ended December 31,
2020.
Chief
Executive Officer, Melissa A. Waterhouse stated, “We came
into 2020 with the second half of 2019 showing modest growth over
the second half of 2018. We were hopeful that two new contract
customers obtained in 2019 would result in a better 2020 for ABMC.
Unfortunately, the Covid-19 pandemic interrupted this positive
momentum. Although our core business (manufacturing drug tests and
performing contract manufacturing services) was being negatively
impacted, ABMC was able to react quickly and pivot to distribution
of Covid-19 tests starting in March 2020. Sales of Covid-19 tests
in the amount of $1,573,000; the vast majority of which was
Covid-19 antibody tests, enabled ABMC to increase sales in 2020 by
13.5%.
Because
the increase in sales was a result of products we distribute, gross
profit decreased to 29.8% of sales in 2020, compared to 32.4% of
sales in 2019. Lower gross margins from drug test sales (due to the
increased manufacturing inefficiencies) were partially offset by
higher margins related to Covid-19 test sales. Throughout the
pandemic, ABMC remained committed to keeping our personnel
employed. We obtained a PPP loan in the amount of $332,000 in April
2020 and, we are in the process of applying for forgiveness of the
PPP loan. From an expense standpoint, operating expenses increased
4.6% in 2020 when compared to 2019; primarily due to commissions
paid related to sales of Covid-19 tests.”
Waterhouse
continued, “So far in 2021, sales of Covid-19 tests have
declined significantly from levels in the early stages of the
pandemic. While we expected Covid-19 sales to decline when vaccines
were released; especially diagnostic tests like the rapid antigen
and PCR tests, the speed and volume at which the vaccines are
becoming available is resulting in a sharper decline in sales of
rapid antibody tests. We still believe there is a need for Covid-19
antibody tests as a means to monitor the efficacy of vaccines or to
determine the length of time that antibodies remain in the body
but, as the pandemic endures, we now believe that need is lower
than originally expected. From a Covid-19 testing perspective,
there are other new products available, such as tests for
home/consumer use, and we are exploring distribution opportunities
of these products.
When it
comes to our core business, in the latter part of 2020 we started
to see signs of improvement; however, our markets are still
uncertain as they relate to the pandemic. We believe that as more
states open back up, increased employment numbers continue and as
state budgets get back on track, we should start to see our markets
stabilize. We have already received new orders from our contract
manufacturing customers in the first quarter of 2021 and that is a
good sign.
And
finally, in December 2020, we entered into an equity line of credit
with Lincoln Park for up to $10M. We are utilizing proceeds from
sales under the purchase agreement for working capital and we will
use proceeds to support growth initiatives in 2021. This includes
strengthening our sales and marketing division and re-introducing
our oral fluid drug testing platform to the market as well as
taking steps to increase our visibility as a contract manufacturer.
Over the last several months, we have been working toward
finalizing an agreement that we signed in 2020 under which we would
provide manufacturing services for another diagnostic company.
Depending on the timing of commencement and volume under the
contract, we would expect this to have a positive impact on 2021
results as well.”
Financial Highlights
● Net sales for 2020
were $4,147,000, compared to $3,655,000 in 2019; an increase of
13.5%. Net sales in the fourth quarter of 2020 were $777,000,
compared to $880,000 in the fourth quarter of 2019; a decrease of
11.7%.
● Operating loss was
$621,000 in 2020, compared to an operating loss of $593,000 in
2019. Operating loss in the fourth quarter of 2020 was $193,000,
compared to an operating loss of $183,000 in the fourth quarter of
2019.
● Net loss was
$796,000, or $(0.02) per share, in 2020, compared to a net loss of
$681,000, or $(0.02), in 2019. Net loss was $233,000, or $(0.01)
per share, in the fourth quarter of 2020, compared to a net loss of
$241,000 in the fourth quarter of 2019.
For
more information on ABMC or its drug testing products, please visit
www.abmc.com.
About American Bio Medica Corporation
American
Bio Medica Corporation manufactures and markets accurate,
cost-effective immunoassay test kits; primarily point of collection
tests for drugs of abuse. ABMC also provides contract manufacturing
services related to certain infectious diseases; such as malaria
and RSV and, distributes a rapid test to detect Covid-19
antibodies, a RT-PCR test to detect Covid-19 and a rapid Covid-19
antigen test.
This release may contain forward-looking statements. These
forward-looking statements involve risks and uncertainties that
could cause actual results to differ, and such differences could be
material. Such risks and uncertainties include, but are not limited
to, risks and uncertainties related to the following: continued
acceptance of our products, increased levels of competition in our
industry, acceptance of new products, future sales and profit
levels of the rapid antibody test, RT-PCR test and rapid antigen
test for Covid-19 that we are distributing, product development,
compliance with regulatory requirements, including but not limited
to our ability to obtain marketing clearance on our product for our
intended markets, intellectual property rights, our dependence on
key personnel, third party sales and suppliers, trading in our
common shares may be subject to “penny stock” rules,
our history of recurring net losses and our ability to continue as
a going concern. There can be no assurance that the Company will be
successful in addressing such risks and uncertainties and the
Company assumes no duty to update any forward-looking statements
based upon actual results. Investors are strongly encouraged to
review the section entitled “Risk Factors” in the
Company's annual report on Form 10-K for the year ended December
31, 2019, quarterly reports on Form 10-Q, and other periodic
reports on file with the Securities and Exchange Commission for a
discussion of risks and uncertainties that could affect operating
results and the market price of the Company's common
shares.
(financial tables follow)
American Bio Medica Corporation
Statements of Operation
|
|
Three Months
Ended
|
Year
Ended
|
||
|
|
December
31,
|
December
31,
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
|
|
|
|
|
|
|
Net
sales
|
$777,000
|
$880,000
|
$4,147,000
|
$3,655,000
|
|
Cost
of goods sold
|
547,000
|
666,000
|
2,909,000
|
2,471,000
|
|
Gross
profit
|
230,000
|
214,000
|
1,238,000
|
1,184,000
|
|
Operating
expenses:
|
|
|
|
|
|
Research
and development
|
13,000
|
20,000
|
90,000
|
82,000
|
|
Selling
and marketing
|
85,000
|
109,000
|
493,000
|
459,000
|
|
General
and administrative
|
325,000
|
268,000
|
1,276,000
|
1,236,000
|
|
Total
operating expenses
|
423,000
|
397,000
|
1,859,000
|
1,777,000
|
|
|
|
|
|
|
|
Operating
loss
|
(193,000)
|
(183,000)
|
(621,000)
|
(593,000)
|
|
|
|
|
|
|
|
Other
income/(expense) - net
|
(40,000)
|
(65,000)
|
(173,000)
|
(93,000)
|
|
|
|
|
|
|
|
Net
loss before tax
|
(233,000)
|
(248,000)
|
(794,000)
|
(686,000)
|
|
|
|
|
|
|
|
Income
tax expense
|
0
|
7,000
|
(2,000)
|
5,000
|
|
|
|
|
|
|
|
Net
loss
|
(233,000)
|
(241,000)
|
(796,000)
|
(681,000)
|
|
|
|
|
|
|
|
Basic
& diluted loss per common share
|
$(0.01)
|
$(0.01)
|
$(0.02)
|
$(0.02)
|
|
|
|
|
|
|
|
Basic
weighted average shares outstanding
|
36,390,976
|
29,211,454
|
35,558,105
|
32,526,669
|
|
Diluted
weighted average shares outstanding
|
36,390,976
|
29,211,454
|
35,558,105
|
32,526,669
|
(Balance Sheets follow)
American Bio Medica Corporation
Balance Sheets
|
|
December
31,
|
December
31,
|
|
|
2020
(unaudited)
|
2019
|
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash
and cash equivalents
|
$98,000
|
$4,000
|
|
Accounts
receivable, net of allowance for doubtful accounts of $22,000 at
December 31, 2020 and $34,000 at December 31, 2019
|
407,000
|
370,000
|
|
Inventory,
net of allowance of $279,000 at December 31, 2020 and $291,000 at
December 31, 2019
|
536,000
|
810,000
|
|
Prepaid
expenses and other current assets
|
104,000
|
6,000
|
|
Right
of Use Asset – Operating Leases
|
35,000
|
34,000
|
|
Total
current assets
|
1,180,000
|
1,224,000
|
|
Property,
plant and equipment, net
|
576,000
|
644,000
|
|
Patents,
net
|
108,000
|
116,000
|
|
Right
of Use Asset – Operating Leases
|
41,000
|
73,000
|
|
Other
assets
|
21,000
|
21,000
|
|
Total
assets
|
$1,926,000
|
$2,078,000
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$577,000
|
$652,000
|
|
Accrued
expenses and other current liabilities
|
620,000
|
518,000
|
|
Right
of Use Liability – Operating Leases
|
33,000
|
34,000
|
|
Wages
payable
|
107,000
|
104,000
|
|
Line
of credit
|
277,000
|
337,000
|
|
PPP
Loan
|
332,000
|
0
|
|
Current
portion of long-term debt, net of deferred finance
costs
|
75,000
|
42,000
|
|
Total
current liabilities
|
2,021,000
|
1,687,000
|
|
Long term
debt, net of current portion & deferred finance
costs
|
1,120,000
|
1,108,000
|
|
Right
of Use Liability – Operating Leases
|
41,000
|
73,000
|
|
Total
liabilities
|
3,182,000
|
2,868,000
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
Common
stock
|
377,000
|
327,000
|
|
Additional
paid-in capital
|
21,717,000
|
21,437,000
|
|
Accumulated
deficit
|
(23,350,000)
|
(22,554,000)
|
|
Total
stockholders’ equity
|
(1,256,000)
|
(790,000)
|
|
Total
liabilities and stockholders' equity
|
$1,926,000
|
$2,078,000
|
#####